Wallingford man indicted in connection with alleged investment scheme

Published 6:43 pm, Friday, April 8, 2016

NEW HAVEN >> A Wallingford man was charged with an 18-count indictment in federal court Thursday after allegedly operating an investment scheme that defrauded individuals of more than $1.5 million.

Joseph Castellano, 58, of Wallingford is accused of defrauding more than 10 victim investors since July 2007, according to a release from the U.S. attorney’s office.

Castellano is free on a $250,000 bond.

Victims allegedly trusted Castellano to help them obtain money for business or real estate development projects, but Castellano reportedly took victims’ money he had offered to invest and repurposed it for personal use, according to the indictment. He also reportedly made false statements to victims about why the retrieval of their funds was delayed.

Federal charges of wire fraud, mail fraud and securities fraud carry maximum prison terms of 20 years each and money laundering carries a maximum prison term of 10 years, according to the release from the U.S. attorney’s office. Castellano is charged with 10 counts of wire fraud, one count of mail fraud, four counts of securities fraud, and three counts of money laundering, according to the indictment.